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Marubeni and JERA look to fast-track new Australian FSRU

Host of enquiries made for country’s second FSRU — and first for New South Wales — with an expected operation start date of 2020

Project developers Marubeni, JERA and Squadron Energy have received a raft of enquiries from parties interested in participating in plans to install a second floating storage and regasification unit off Australia.

Officials working on the project under the joint development team name Australia Industrial Energy (AIE) told TradeWinds that the size of the FSRU will not be determined until an ongoing feasibility study and discussions with gas customers have been concluded.

But they expect a full-size vessel or larger will be required. Earlier press reports have detailed an import capacity of around two million tonnes per annum for the unit.

Currently, either an existing FSRU or a converted LNG carrier look the best suited for the business as the intention is to pursue a “fast-track” project and see a unit commissioned as soon as possible, one official said.

Japanese eye potential Australian FSRU project

He added that after the project was announced by Marubeni at the end of February, the developers received many contacts and proposals from FSRU providers, shipowners with conversion candidates and shipyards.

He said the team is aware of the location, size, and contractual hire periods of existing FSRUs and will look at the time required to convert LNG carriers to see if this fits with its required availability of a unit.

He did not rule out a newbuilding but said this will depend on the results of the ongoing study.

AIE, whose partner Squadron is controlled by Australian mining billionaire Andrew Forrest’s Minderoo Group, plans to use existing berths or jetties in one of the three major ports in New South Wales — Newcastle, Port Botany (Sydney) or Port Kembla (Wollongong).

The project aims to supply industrial end-users in the region and could extend its brief to a new power plant.

The companies are looking at taking a final investment decision on the project by the end of this year, with a view to seeing the new facility in operation by 2020.

The developers have no operational experience of FSRUs but Marubeni is developing the huge Java-1 power plant project in Indonesia, which will use a floating regas unit.

This is the second FSRU project planned for Australia — following AGL’s scheme to site a regas unit in Victoria — which is about to climb into the world’s number one LNG producer slot.

But the bulk of Australian LNG is committed for exports at a time when domestic gas demand is climbing, pushing developers to turn to FSRUs as quick-fix supply solutions.

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Marubeni and JERA look to fast-track new Australian FSRU

Host of enquiries made for country’s second FSRU — and first for New South Wales — with an expected operation start date of 2020

Project developers Marubeni, JERA and Squadron Energy have received a raft of enquiries from parties interested in participating in plans to install a second floating storage and regasification unit off Australia.

Officials working on the project under the joint development team name Australia Industrial Energy (AIE) told TradeWinds that the size of the FSRU will not be determined until an ongoing feasibility study and discussions with gas customers have been concluded.

But they expect a full-size vessel or larger will be required. Earlier press reports have detailed an import capacity of around two million tonnes per annum for the unit.

Currently, either an existing FSRU or a converted LNG carrier look the best suited for the business as the intention is to pursue a “fast-track” project and see a unit commissioned as soon as possible, one official said.

Japanese eye potential Australian FSRU project

He added that after the project was announced by Marubeni at the end of February, the developers received many contacts and proposals from FSRU providers, shipowners with conversion candidates and shipyards.

He said the team is aware of the location, size, and contractual hire periods of existing FSRUs and will look at the time required to convert LNG carriers to see if this fits with its required availability of a unit.

He did not rule out a newbuilding but said this will depend on the results of the ongoing study.

AIE, whose partner Squadron is controlled by Australian mining billionaire Andrew Forrest’s Minderoo Group, plans to use existing berths or jetties in one of the three major ports in New South Wales — Newcastle, Port Botany (Sydney) or Port Kembla (Wollongong).

The project aims to supply industrial end-users in the region and could extend its brief to a new power plant.

The companies are looking at taking a final investment decision on the project by the end of this year, with a view to seeing the new facility in operation by 2020.

The developers have no operational experience of FSRUs but Marubeni is developing the huge Java-1 power plant project in Indonesia, which will use a floating regas unit.

This is the second FSRU project planned for Australia — following AGL’s scheme to site a regas unit in Victoria — which is about to climb into the world’s number one LNG producer slot.

But the bulk of Australian LNG is committed for exports at a time when domestic gas demand is climbing, pushing developers to turn to FSRUs as quick-fix supply solutions.